Palo Alto Networks set to report Q4 earnings, investors watch for guidance on fiscal 2026 amid CyberArk deal fallout.

Palo Alto Networks is set to report Q4 earnings, with analysts focusing on the fiscal 2026 forecast amidst mixed sentiment in the cybersecurity sector. Jefferies expects Q4 targets to be met, but trimmed its fiscal 2026 revenue estimate due to subscription revenue pressures from Fortinet and Check Point. UBS views the setup as less demanding after concerns about the fiscal 2026 outlook and the CyberArk acquisition. The firm sees potential for greater investor confidence if management offers more detail on integration plans and synergies.

Palo Alto Networks Inc. (NYSE: PANW, ETR: 5AP) is set to report its fiscal fourth quarter (Q4) earnings next week, with analysts focusing on the company's guidance for fiscal 2026. The cybersecurity sector faces a mixed backdrop, but analysts are optimistic about Palo Alto's performance.

Jefferies analysts expect Palo Alto to meet its Q4 targets of $2.5 billion in revenue, 19% to 20% growth in remaining performance obligations (RPO), and $5.5 billion annual recurring revenue (ARR). However, they caution that the market's attention will be on the fiscal 2026 forecast. The firm sees consensus free cash flow margin expectations of 37.4% as achievable but views revenue growth projections of about 14% year over year as carrying more risk. Jefferies trimmed their fiscal 2026 revenue estimate by 50 basis points to 13.4% growth, citing subscription revenue pressures recently reported by Fortinet and Check Point [1].

UBS analysts view the setup going into the quarter as less demanding after investor concerns earlier this year about the fiscal 2026 outlook and a negative market reaction to the CyberArk acquisition. UBS maintained its 'Neutral' rating and lowered its price target to $185 from $200. They noted that the CyberArk transaction has mixed feedback but still better than sentiment toward some peers. The firm sees potential for greater investor confidence if management offers more detail on integration plans, synergies, and the role of its XSIAM security analytics platform in driving ARR growth [2].

Evercore ISI has reiterated an Outperform rating on Palo Alto Networks with a price target of $220.00 ahead of the company’s upcoming earnings report. The research firm expects investors to focus primarily on Palo Alto Networks’ initial fiscal year 2026 guidance, with less emphasis on the pending Cyberark acquisition. Evercore ISI has reduced its fiscal year 2026 revenue growth forecast from 13.7% to 12.3% [3].

Shares of Palo Alto traded up 4.3% at $175 on Tuesday afternoon, reflecting investor optimism ahead of the earnings report.

References:
[1] https://www.proactiveinvestors.com/companies/news/1076570/palo-alto-set-to-deliver-q4-beat-with-investors-focused-on-guidance-amid-cyberark-deal-fallout-1076570.html
[2] https://finance.yahoo.com/news/palo-alto-networks-panw-earnings-140002380.html
[3] https://www.investing.com/news/analyst-ratings/palo-alto-networks-stock-rating-reiterated-at-outperform-by-evercore-isi-93CH-4184578